Problem 1: Average total cost is:
a. the change in cost divided by the change in output
b. total cost divided by output
c. the change in output divided by the change in costs
d. total cost times output
Problem 2: When an increase in the firm's output reduces its long run average cost, it experiences
a. economic of scale
b. diseconomies of scale
c. constant returns to scale
d. variable returns to scale
Problem 3: When diseconomies of scale outweigh economies of scale the
a. long run average cost curve rises
b. marginal cost curve declines
c. average total cost curve declines
d. average variable cost curve declines